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Zepto Raises $650 Million, Pushing Valuation to $3.5 Billion

By
Garima Bansal
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0
Zepto

In a major boost to India’s quick commerce sector, Zepto, the instant grocery delivery startup, is set to secure approximately $650 million from a mix of existing and new investors. This funding round is expected to elevate Zepto’s valuation to an impressive $3.5 billion, reflecting a significant leap from its previous $1.4 billion valuation in August 2023.

Leading this funding round are existing investors such as StepStone Group, Nexus Venture Partners, and Glade Brook Capital, joined by new investors including Avenir Growth, Lightspeed Venture Partners, DST Global, and Avra. StepStone Group and Nexus Venture Partners are at the forefront of this round, contributing a majority of the funds.

The remarkable increase in Zepto’s valuation underscores the robust market position and strategic direction of the company. Since its inception, Zepto has seen a meteoric rise in its valuation from $250 million in 2021, to $900 million in 2022, and $1.4 billion in 2023. The current funding round will more than double its valuation, showcasing strong investor confidence.

Zepto operates in a fiercely competitive market, facing rivals like Blinkit (owned by Zomato), Swiggy Instamart, and Tata’s BigBasket (BB Now). Currently, Blinkit holds the largest market share in the quick commerce sector with 40-45%, but Zepto is catching up swiftly.

Zepto’s operational metrics are impressive, with the company handling 550,000 orders daily through 340 dark stores across seven Indian cities. The company’s annualized gross order value stands at $1.2 billion, with a take rate of 23%. In comparison, Blinkit processes over 700,000 orders per day through 526 dark stores, with a take rate of 19%.

Unlike its competitors, Zepto is focused exclusively on quick commerce, which requires rapid growth and substantial capital investment to stay competitive. This focus has driven its need for substantial funding to differentiate itself and capture more market share.

The new funding will help Zepto bolster its competitive stance against larger players and continue its growth trajectory. The company aims to achieve EBITDA breakeven by September 2024 and reduce its cash burn to single-digit millions.

The quick commerce sector in India has evolved into a $5-billion annual sales channel, according to Goldman Sachs. Zepto’s substantial market share and operational efficiency position it well to capitalize on this growing market.

Creme Castle Secures Rs 7 Crore Seed Funding from V3 Ventures

By
Garima Bansal
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0
creme castle

Creme Castle, a burgeoning bakery startup, has successfully raised Rs 7 crore in seed funding from V3 Ventures, led by venture capitalist Arjun Vaidya, Amit Jain, CEO and co-founder of CarDekho, and Indian Silicon Ventures. This infusion of capital is poised to accelerate Creme Castle’s growth and expansion efforts, especially in tier 2 and tier 3 cities where demand for their products is rising.

According to CRISIL data, the Indian bakery market is projected to grow at an annual rate of 11-12% from 2024 to 2028, reaching sales of Rs 1,850 billion by FY2028. Creme Castle’s CEO, Pranjay Mittal, attributes this growth to increased consumer spending on celebrations and the influence of social media, which have significantly boosted demand for bakery products in smaller cities.

Founded in 2013 by Pranjay Mittal, Creme Castle has already established a strong presence, delivering across more than 20 pin codes. The company aims to scale up rapidly, targeting entry into 15 new markets by FY2025. Currently, over half of Creme Castle’s revenue comes from its own platform, with the remainder generated through food aggregators like Zomato and Swiggy.

Pranjay Mittal expressed confidence in the company’s future, stating, “Consumers are increasingly embracing celebrations, reflecting a growing enthusiasm to mark special occasions. This is one of the reasons our investors believe Creme Castle will be among the top-three players in this specialized bakery space by 2026.”

The strategic investment from V3 Ventures and other prominent backers underscores the strong potential and market position of Creme Castle. With this funding, the company is well-positioned to enhance its product offerings, expand its market reach, and solidify its place as a leading player in the Indian bakery industry.

Indigrid Technology and Hour4u Secure Funding to Fuel Expansion and Innovation

By
Garima Bansal
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Indigrid

Indigrid Technology and Hour4u have successfully raised significant funding rounds to accelerate their expansion and innovation efforts. Indigrid Technology, specializing in electric vehicle (EV) components, secured USD 5 million in its first institutional funding round led by Cactus Partners, an early growth-stage venture capital fund. Founded in 2017 and based in Manesar, Haryana, Indigrid Technology plans to use this capital infusion to ramp up its manufacturing capabilities, broaden its product portfolio, and embark on strategic growth initiatives. Co-founders Sameer Narang and Rishab Puri emphasized that the investment will bolster their product development endeavors to meet the burgeoning demand within the rapidly evolving EV market landscape. This funding marks Cactus Partners’ seventh investment in Indigrid Technology, highlighting their confidence in the startup’s potential to thrive in the electric mobility sector.

Hour4u, a rental marketplace catering to venue bookings and on-demand hourly workers, raised USD 420K in its latest seed funding round led by Apptad Technologies Private Ltd. This funding, comprising a blend of debt and equity, represents a pivotal step for Hour4u in scaling its operations, expanding its customer base, and diversifying its service offerings across major metropolitan areas in India. Founded in 2019 by Anmol Pathak in Pune, Hour4u began as a grassroots initiative facilitating part-time job opportunities for college students through a simple WhatsApp group. It has since evolved into a comprehensive platform offering seamless on-demand fulfillment for various rental needs, including staffing solutions and venue reservations.

Anmol Pathak, CEO of Hour4u, expressed confidence in the company’s growth trajectory, highlighting plans to enhance service capabilities and further streamline operations through digital innovations like Workorbits. This software enables agencies to digitize workflows, enhance client experiences with digital contracts and KYCs, and ensure real-time staff tracking to mitigate fraud risks. Both Indigrid Technology and Hour4u exemplify India’s vibrant startup ecosystem, where innovative solutions and scalable business models attract robust investor interest. Their recent funding rounds underscore their commitment to driving transformative change within their respective industries, poised to capitalize on emerging market opportunities and deliver value-driven solutions to their customers. As they continue on their growth trajectories, Indigrid Technology and Hour4u are well-positioned to solidify their market presence, innovate further, and contribute significantly to India’s technological advancement and economic landscape.

Renee Cosmetics Raises Rs 100 Crore in Funding from Evolvence, Edelweiss

By
Garima Bansal
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0
Renee Cosmetics

In a significant move aimed at bolstering its market presence and product offerings, Renee Cosmetics has successfully raised Rs 100 crore in a Series B funding round led by Evolvence India and Edelweiss Group. This latest round of funding, which values the company at Rs 1,200-1,400 crore, marks a substantial 60% increase in valuation since its last funding round in December 2022.

Founded by Aashka Goradia Goble, Priyank Shah, and Ashutosh Valani, Renee Cosmetics has swiftly emerged as a frontrunner in the beauty industry, specializing in a diverse range of over 200 beauty and perfume products. These products are not only available on major e-commerce platforms like Amazon, Flipkart, Nykaa, and Myntra but also in 1,200 shop-in-shop stores nationwide.

The infusion of Rs 100 crore in this funding round is poised to fuel Renee’s ambitious expansion plans, particularly in enhancing its omnichannel presence. Currently, about 40% of the company’s revenue comes from offline channels, a segment Renee aims to grow beyond 50% by the year-end. This strategic shift is driven by the belief that customers in the color cosmetics space prefer experiencing products firsthand before making a purchase.

Ashutosh Valani, co-founder and director of Renee Cosmetics, emphasized the company’s strategic focus on product diversification and deeper market penetration. “Our goal is to become a leading force in the Indian beauty industry by offering a comprehensive range of high-quality beauty products accessible through both online platforms and offline retail channels,” said Valani.

Renee Cosmetics anticipates doubling the number of its shop-in-shop stores to approximately 2,400 by the end of this fiscal year, aiming to strengthen its retail footprint across the country. Furthermore, the company is on track to achieve a net revenue of Rs 400 crore by the fiscal year-end and anticipates achieving profitability within the next 18 months.

“This investment not only underscores the confidence of our investors in our vision but also enables us to accelerate our growth trajectory,” noted Priyank Shah, co-founder of Renee Cosmetics. “We are committed to leveraging this funding to introduce innovative products that resonate with our diverse customer base and reinforce Renee’s position as a pioneer in the beauty and personal care segment.”

The Series B funding round also includes participation from existing investors Equanimity Ventures and 9Unicorns (now 100 Unicorns), underscoring their continued support for Renee’s growth initiatives. The company’s steadfast commitment to innovation and customer-centric approach has positioned it as a formidable competitor in the beauty landscape, competing with established brands such as Lakme, Sugar Cosmetics, and MyGlamm.

As Renee Cosmetics embarks on its next phase of growth, the infusion of Rs 100 crore is set to propel the company towards achieving its vision of becoming a globally recognized beauty brand celebrated for its inclusivity, innovation, and commitment to quality.

Aakash Anand Launches Wolfpack Labs with INR 50 Crore to Support Early-Stage Startups

By
Garima Bansal
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aakash anand bellavita

Aakash Anand, the founder of BellaVita and a seasoned entrepreneur, has announced the launch of Wolfpack Labs, a new venture studio aimed at supporting early-stage startups. Anand has committed INR 50 crore of his own money to this initiative, focusing on seed and pre-seed investments. Wolfpack Labs will target startups in their 0-1 phase, with plans to invest in 4-5 companies per cohort. The typical investment size will range from INR 25 lakhs to INR 1 crore.

Wolfpack Labs is sector-agnostic and aims to provide not just financial backing but also mentorship, go-to-market strategy guidance, and access to a wide range of opportunities. Anand emphasized that the inspiration for Wolfpack Labs comes from his own entrepreneurial journey and his vision of a supportive ecosystem for young entrepreneurs in India. He noted that while many young entrepreneurs have great ideas and intentions, they often lack the support system needed to overcome initial challenges.

The name “Wolfpack” reflects the strength and unity of a pack led by an alpha, symbolizing the supportive and collaborative culture Anand aims to foster. Key traits like patience, curiosity, teamwork, planning, and perseverance are central to the ethos of Wolfpack Labs, which are seen as essential for successful founders.

Beyond his role at BellaVita, Anand is actively involved in other ventures and is a partner at Ananta Capital, where he focuses on strategic investments and partnerships in the direct-to-consumer (D2C) and digital sectors. Under the IDAM House of Brands, Anand has developed a portfolio that includes beauty and personal care (BPC), pet care, and food and beverage D2C brands. He claims a track record of building a business empire with an annual revenue run rate (ARR) exceeding INR 1000 crore through brands like BellaVita, Bevzilla, Better Alt, Guardian, and GNC.

Anand’s ambition with Wolfpack Labs is to become a leading seed investor for go-to-market-ready startups, providing them with the capital, guidance, and network they need to scale rapidly. He aims to create giant companies and successful businesses by focusing on these key values and supporting early-stage founders in their growth journeys.

Foresite Capital Raises $900M for Sixth Healthcare and Life Sciences Fund

By
Garima Bansal
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0
Foresite capital

San Francisco-based Foresite Capital, a leading investment firm in healthcare and life sciences, has closed its sixth fund with $900 million in capital commitments. This significant milestone underscores the firm’s commitment to advancing innovative technologies within the healthcare and life sciences sectors. Fund VI has attracted a diverse group of investors, including university endowments, charitable foundations, medical institutions, pension funds, insurance companies, private banks, and family offices globally, reflecting broad confidence in Foresite Capital’s investment strategy.

With the new fund, Foresite Capital will focus on three key areas: precision therapeutics, life science infrastructure, and healthcare delivery. Precision therapeutics aims to develop treatments tailored to individual patient needs for better efficacy, while life science infrastructure investments will support companies providing critical services within the industry. Healthcare delivery investments will target more efficient and accessible healthcare models.

Founded in 2011, Foresite Capital manages over $3.5 billion in assets and operates from the San Francisco Bay Area, Los Angeles, and New York City. The firm has a strong track record, with over 47 IPOs, 28 mergers and acquisitions, and 58 FDA-approved drugs, all achieved through a data and science-driven investment approach. Fund VI’s portfolio includes promising companies like Alumis, CG Oncology, Latigo, RayThera, Evonetix, and Xaira Therapeutics.

Jim Tananbaum, founder and CEO of Foresite Capital, emphasized that advances in biology, genomics, and artificial intelligence are driving biotech innovation, making this an optimal time for investment. Hadi Tabbaa, Managing Director and Head of Investor Relations and Business Development, expressed gratitude for the support from both long-standing partners and new investors, highlighting the firm’s mission to support entrepreneurs tackling significant challenges in the healthcare system and improving patient lives.

Huddle Venture’s Second Fund Exceeds Expectations with ₹150 Crore Close

By
Garima Bansal
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0
Huddle Ventures

Gurgaon-based venture capital firm Huddle Ventures has announced the oversubscription of its second fund, Fund II, initially targeted at ₹100 crore, which is now set to close at an impressive ₹150 crore. This milestone reflects the firm’s growing reputation and the confidence investors have in its ability to nurture early-stage startups across diverse sectors. Fund II’s backers include family offices, successful founders, and high-net-worth individuals (HNIs). The fund’s strategy is sector-agnostic, focusing on early-stage investments in consumer brands, fintech, agri-tech, and healthcare. Huddle Ventures plans to make approximately 20 investments from this fund, with initial investment amounts ranging from $500k to $1 million per company, including follow-on investments.

Founded in 2017 by Ishaan Khosla and Sanil Sachar, Huddle Ventures has established itself as a prominent player in the early-stage investment landscape. The firm aims to lead the first institutional rounds for startups, providing not just capital but also strategic support in business development, go-to-market strategies, and capital structuring. “Our goal is to institutionalize a methodology that consistently supports early-stage ventures, enabling them to grow into established organizations,” stated Sanil Sachar, General Partner at Huddle Ventures. “We leverage our extensive network for business development and have a strong pool of LPs and advisors to support the success of our startups.”

The oversubscription of Fund II underscores the trust and confidence that limited partners (LPs) and founders have in Huddle Ventures. “The oversubscription is a significant achievement for us and a testament to our high-conviction, pre-seed investment strategy,” said Ishaan Khosla, General Partner at Huddle Ventures. The firm’s approach focuses on providing comprehensive support to early-stage startups, equipping them with the necessary infrastructure, social, and intellectual capital to build scalable businesses. This hands-on involvement is a key differentiator for Huddle Ventures, which has successfully implemented this strategy with its initial investments.

Huddle Ventures’ portfolio boasts a diverse array of companies, including health and wellness firm Bold Care, coffee brand Blue Tokai, oral care firm Perfora, and logistics company Celcius. The firm manages about $20 million in assets under management (AUM) across its two funds and has supported over 30 firms spanning both B2C and B2B sectors. The venture capital landscape is evolving, with family offices now allocating a more significant portion of their investments to venture funds. “Family offices are investing up to 10% of their corpus into venture funds now,” noted Khosla, highlighting a growing trend among investors who are increasingly recognizing the potential of early-stage ventures. Huddle Ventures’ commitment to being sector-agnostic allows it to tap into various market opportunities, relying on its experience in building consumer brands and its extensive network in the ecommerce and fintech sectors.

Kissflow Announces Layoffs of 45-50 Employees Following Product Shutdown

By
Garima Bansal
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0

Kissflow, a leading low-code SaaS platform, has made the difficult decision to lay off 45-50 employees across sales, marketing, and product development functions. This move comes in the wake of a recent product shutdown and subsequent annual performance evaluations, as reported by MoneyControl.

The layoffs have impacted employees based in India, the US, and the UAE, significantly reducing Kissflow’s workforce, which previously exceeded 400 employees.

Founded by Suresh Sambandam in 2012, Kissflow is headquartered in Chennai and specializes in providing cloud-based business process management (BPM) and workflow automation solutions. With a diverse clientele that includes Fortune 500 companies such as PepsiCo, McDermott, Motorola Solutions, and Danone, Kissflow has established itself as a trusted partner in streamlining organizational operations.

Despite its notable successes, Kissflow’s recent decision to downsize reflects broader challenges within the SaaS industry in India. Similar instances of layoffs have been observed across various firms, attributed to factors such as market downturns and shifts in strategic focus. Last year, Chargebee, another prominent player in the SaaS space, laid off 10% of its workforce, affecting approximately 100 to 120 employees across multiple departments.

The layoffs at Kissflow serve as a reminder of the dynamic nature of the SaaS industry, where companies must adapt swiftly to evolving market conditions while prioritizing long-term sustainability and growth.

JCB Salons Secures INR 40 Crore Investment from BlackSoil for Strategic Expansion

By
Garima Bansal
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0
blacksoil founder

JCB Salons India the renowned franchise of the global premium salon chain Jean Claude Biguine (JCB) has successfully raised a capital investment of INR 40 crore (approximately $4.8 million) from the alternative credit platform BlackSoil.

This strategic infusion of funds has been directed towards the acquisition of Spalon a prominent salon chain based in Southern India, marking a significant milestone in JCB’s expansion strategy.

With this investment, JCB Salons aims to not only acquire Spalon but also enhance its working capital and operational efficiencies across the group. Currently operating in Mumbai, Pune, and Bangalore, JCB Salons seeks to leverage its global expertise in collaboration with Spalon’s local market insights to strengthen its presence in both West and South Indian markets.

The Indian beauty market is poised for substantial growth, projected to reach approximately $580 billion by 2027. Fueled by rising disposable incomes and aspirational spending, this sector presents lucrative opportunities for expansion and innovation.

Sneh Koticha, Founder of JCB Salons India, expressed confidence in the future prospects of the spa and salon business, particularly in South India, a region poised for significant growth.

Ankur Bansal, Co-founder and Director of BlackSoil, echoed Contractor’s sentiments, emphasizing the immense potential of the beauty and grooming sector in India. He commended JCB Salons for its innovative approach to catering to India’s beauty-conscious consumers and highlighted the acquisition of Spalon as a strategic move to further amplify its business prospects.

The company’s investment in JCB Salons underscores its commitment to supporting growth companies and fostering innovation in diverse sectors.

The collaboration between JCB Salons and BlackSoil heralds a new chapter of growth and expansion in the Indian beauty and wellness industry. With a shared vision of driving excellence and innovation, both entities are poised to capitalize on emerging opportunities and deliver unparalleled experiences to consumers across the country.

Finsall Raises INR 15 Crore in Bridge Funding Round Led by Unicorn India Ventures and Seafund

By
Garima Bansal
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0
finsall founder

Bengaluru-based insurtech startup Finsall has secured INR 15 crore in bridge funding, with leading participation from Unicorn India Ventures and Seafund, along with several other institutional investors.

This infusion of capital will be instrumental in establishing a non-banking finance company to scale lending operations and fortify partnerships with insurers and lenders.

Finsall, founded in 2018 by Tim Mathews, Promod Khanna, and Prabal Khanna, specializes in insurance premium financing services, catering to a diverse clientele of policy seekers. With a keen focus on innovation and customer-centric solutions, Finsall has introduced a credit-as-a-service (CaaS) platform, streamlining the credit process for insurance products and eliminating the need for complex lending software systems.

Tim Mathews, CEO of Finsall, expressed optimism about the company’s growth trajectory, citing a nine-fold increase in revenue over the past two years. Finsall’s strategic expansion plans include diversifying its portfolio to encompass life insurance products and extending its reach to customers across 8,000 locations in India.

The latest funding round follows a successful pre-series A funding round in January 2022, where Finsall raised INR 12 crore from Unicorn India Ventures and Seafund. Looking ahead, the company aims to raise approximately $10 million in its series A funding round within the next six to seven months.

Anil Joshi, Managing Partner at Unicorn India Ventures, underscored the immense potential of insurance premium financing in India, particularly in the wake of heightened customer acceptance post-Covid. With insurance penetration still at a nascent stage, Finsall is well-positioned to capitalize on this burgeoning market segment and drive exponential growth in the years ahead.

Finsall’s steadfast commitment to innovation, coupled with its robust financial backing, positions it as a frontrunner in the insurtech landscape, poised to revolutionize insurance premium financing and reshape the insurance sector’s future in India.

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